Agriculture Secretary Tom Vilsack today announced that USDA is making up to $44 million available to farmers, ranchers and businesses to develop new products and expand markets through the Value-Added Producer Grant program.
“America’s farmers, ranchers and rural business owners are innovative entrepreneurs and this program helps them grow economic opportunities for their families and communities by increasing the value of the things they produce,” Vilsack said. “The Value-Added Producer Grant program has a great track record of helping producers increase the value of products, expand their markets and customer base.”
Value-Added Producer Grants may be used to develop new products and create additional uses for existing ones. Priority for these grants is given to Veterans, members of socially disadvantaged groups, beginning farmers and ranchers, and operators of small- and medium-sized family farms and ranches. Additional priority is given to applicants who seek funding for projects that will create or increase marketing opportunities for these types of operators.
More information on how to apply is on page 20607of the April 8 Federal Register. The deadline to submit paper applications is July 1, 2016. Electronic applications submitted through grants.gov are due June 24, 2016. Please contact the Michigan Business Programs Division at 517-324-5157 for specific questions.
Since 2009, USDA has awarded 1,126 Value-Added Producer Grants totaling $144.7 million. Approximately 19 percent of the grants and 13 percent of funding has been awarded to beginning farmers and ranchers.
In 2015, Michigan processed eight grants to producers. Three grants were for planning and five were for working capital purposes. The grants were related to applesauce, jams, fiber yarn, organic maple syrup, maraschino cherries and wine grapes and ranged from $5,015 to $250,000.
Value-Added Producer Grants are a key element of USDA’s Know Your Farmer, Know Your Food initiative, which coordinates the Department’s work on local and regional food systems. Secretary Vilsack has identified local and regional food systems as one of the four pillars of rural economic development.
Congress increased funding for the Value-Added program when it passed the 2014 Farm Bill. That law builds on historic economic gains in rural America over the past six years, while achieving meaningful reform and billions of dollars in savings for taxpayers.
Since 2009, USDA Rural Development has invested $11 billion to start or expand 103,000 rural businesses; helped 1.1 million rural residents buy homes; funded nearly 7,000 community facilities such as schools, public safety and health care facilities; financed 180,000 miles of electric transmission and distribution lines; and helped bring high-speed Internet access to nearly 6 million rural residents and businesses.